The importance of stablecoins to the dollar and the incredible prospects for NFT: Highlights from Bitcoin MENA
From 9 to 10 December, a large-scale cryptocurrency conference called Bitcoin MENA was held in Abu Dhabi. It was attended by popular representatives of the blockchain industry, who shared useful information about the situation on the coin market. Among them were Paxos platform head Charles Cascarilla and Yat Siu from Animoca, who gave just published interviews to Cointelegraph representatives. Here’s the main one.
Why stablecoins are helping the popularity of the dollar
Charles Cascarilla of Paxos started off with the idea that stablecoins are actively attracting new users to the Web3 world. Why is this happening? The fact is that tokens tied to real instruments – primarily the US dollar – solve real problems for people.
At the end of October, Charles wrote an open letter to the next US presidential administration, in which he called the current global financial system outdated and inefficient. According to the expert, the industry is extremely important to America, but it continues to operate “at the speed of a post office.”
Paxos executive Charles Cascarilla
Here is a Paxos spokesperson’s retort on the subject.
The financial system was as closed as an intranet – inaccessible and unapproachable. No one could create anything based on it. However, the world today works differently. With the emergence of stablecoins, the last echoes of the pre-internet era are becoming a thing of the past.
The expert also touched upon the influence of steibles on the usefulness and popularity of the dollar based on such tokens. Still, stablecoins are available to users around the clock, plus they can be instantly transferred anywhere in the world.
Most importantly, it is possible to own tokens linked to the US dollar exchange rate without having a bank account. And with the number of smartphone owners now outpacing bank customers, this feature makes stablecoins a serious innovation.
Charles continues.
I think this could almost be the most transformative application of blockchain technology in the world.
Bitcoin’s struggle with the dollar
How exactly are stables attracting regular users to the world of digital assets? According to a Paxos spokesperson, it all comes down to solving pressing problems for ordinary people.
I believe the essence of stablecoins is that you don’t even know it exists based on blockchain. It appeals to people because it gets rid of problems. Ultimately, the Web3 world should just focus on the list of inconveniences it can save its users from.
In Cascarilla’s version, the Web3 industry is not just a cool thing in and of itself. The crypto and blockchain sphere is primarily meant to help people’s lives to further popularise it. And just meeting the needs of ordinary users is what stackcoins are all about.
On 5 November, Paxos launched Global Dollar (USDG) and Global Dollar Network in partnership with financial companies including Robinhood, Galaxy Digital and Kraken. The aim of this initiative was to form a consortium to support the popularisation of such tokens with stable value.
What will happen to NFT in the future
The topic of unique tokens or NFT was touched upon by Yat Siu, a representative of the well-known Animoca Brands team. The expert expects the relevance of the sphere of such tokens to return during the current bullrun.
And ideally, the industry will exceed its records from 2021 and 2022, when the total volume of NFT transactions per month was between $1 billion and $5 billion. According to the CryptoSlam platform, the figure peaked at 6 billion in January 2022.
Animoca Brands spokesperson Yat Siu said
Now, it’s not even reaching the billion mark, indicating a significant decline in investor interest in this asset category. However, Siu is not worried about what is happening, because “failure is a natural part of business”.
This is true for companies as well. How many fashion brands, shoe manufacturers or game studios have released products that didn’t take root and then shut down? That’s life, isn’t it? So they can hardly be blamed for trying.
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Siu described the failure of some collections and projects in general as a normal cycle in the digital asset industry.
He said NFTs can be seen as a status symbol and an analogue to luxury goods that carry cultural and symbolic capital. Well, when people make good money, they spend what they earn on reputation-based investments.
When we make money, we don’t spend it on making more money. We spend it on luxuries: a nice house, a car, new clothes and stylish shoes. Right? These are not investments in the classic sense. But they can be seen as an investment in your reputation.
Characters from Pudgy Penguins’ NFT collection.
Well, when a person’s reputation improves, the number of opportunities available to him or her increases. And this is where the user may become interested in NFTs, some of which are in serious demand and cost the price of an expensive car.
That’s a whole other story, right? If I own a Picasso work, my reputation becomes special.
According to Siu, this approach is also relevant to legendary NFT collections like Bored Apes, Pudgy Penguins and CryptoPunks. And just because of them, the representative of Animoca Brands has no doubts about the return of relevance of the sphere of unique tokens in the future.
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